Nov 18, 2021

TSMC Gets Billions in Pre-Payments for Fab Capacity

Posted by in category: computing

Long-term supply agreements are nothing new in the semiconductor industry. Both fabless chip designers and contract makers of chips prefer stable supply and demand, respectively. But in a world with severely constrained supply, chip developers are willing to pay for their integrated circuits well in advance, which is a boon for foundries.

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest foundry, disclosed in a filing that it received temporary receipts of around $3.825 billion (NT$106,33 billion) from customers as of September 30, 2021. Temporary receipts from TSMC’s customers are payments received to retain its capacity. To put the number into context, TSMC earned some $14.926 billion (NT$414.67 billion) in Q3 2021, so $3.825 billion is a sizeable sum for the company.

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